Uzbekistan's current account deficit jumps to $5.8 billion as imports surge

The deficit was nearly 19 times larger than the $304 million recorded during the same period last year, driven primarily by a significant deterioration in the trade balance. The country's trade deficit expanded from $2.7 billion to $8.3 billion over the period.

Despite persistent geopolitical tensions and continued uncertainty in the global economy, the Central Bank said Uzbekistan's external sector maintained several positive trends seen in previous quarters. These included stronger exports excluding gold, growth in services exports, higher inflows of international remittances, and further accumulation of international reserves, all of which contributed to an improvement in the country's net international investment position.

Total exports declined to $5.6 billion in January–March from a year earlier. Goods exports fell from $6.2 billion to $3.4 billion, largely because gold sales were suspended during the quarter. Exports of goods excluding gold, however, rose by 29%, while services exports increased by 18% to $2.17 billion.

Imports continued to rise on the back of strong domestic demand and sustained investment activity. Total imports climbed 29% year-on-year to $13.9 billion, with goods imports increasing 33% to $10.2 billion and services imports growing 19% to $3.7 billion. Machinery and equipment, vehicles, chemical and mineral products, and food products accounted for the largest share of import growth.

Although the trade deficit widened and the primary income account recorded a negative balance of $43 million, part of the external imbalance was offset by net secondary income inflows totaling $2.5 billion. Overall, secondary income receipts reached $2.9 billion during the quarter.

According to the Central Bank, the current account deficit was financed mainly through direct investment and other investment inflows. Net foreign direct investment reached $702 million, while net portfolio investment amounted to $4.1 million. Other investment generated a net inflow of around $1.1 billion, supported by transactions involving foreign currency and deposits, trade credits, and external borrowing by the government, banks, and other sectors of the economy.

The financial account posted a deficit of $4.9 billion in the first quarter. While the foreign currency component of international reserves declined by $3.1 billion, rising global gold prices increased the overall value of the country's international reserves by nearly $2.7 billion, bringing the total to $69 billion as of April 1, 2026.

Uzbekistan's net international investment position strengthened by 10% during the quarter to $21.6 billion. Residents' external assets increased by $2.6 billion to $131.08 billion, while external liabilities rose by only $534 million to $109.49 billion.

As of April 1, the country's total external debt remained unchanged from the beginning of the year at $82.2 billion. Public external debt accounted for $40.5 billion, while corporate external debt stood at $41.7 billion.

The Central Bank noted that corporate external borrowing is undertaken by private-sector companies without government guarantees and is serviced using the borrowers' own financial resources. It also cited the International Monetary Fund's assessment that Uzbekistan's external debt burden remains moderate, largely because a significant share of the country's borrowing has been secured on concessional terms.